Ikea Case Essay

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CASE STUDY Prepared for: Professor Anderson Table of Contents Summary of Case 2 Overview: 2 Strategy: 3 IKEA 3 Basic Problems: 3 Main Issues: 4 SWOT Analysis 5 Strength: 5 Weakness: 6 Opportunity: 7 Threats: 7 Recommendations 8 Questions from the Case: 8 Work Cited 11 Summary of Case Overview: Known as the World’s largest designed, inexpensive, home furniture retailer, IKEA sells its stylish Scandinavian designs in about 237 stores in 35 countries, and has a work force of approximately 90 thousand workers since its first opening. The company was founded in 1943 and had its first store opened in 1958. With its unique concept, IKEA provides home furnishing items, with good quality, and more important, with a price that the majority of people can afford. Each single location carries about 12 thousand products, which makes IKEA a dominant with approximately 5 to 10 percent of the home furniture market where it operates. Owned by a charitable foundation in the Netherlands, the company has as main activities, the development, purchase, distribution, and the sales of IKEA products, where as, products are only sold directly to IKEA stores franchised by the IKEA system. Moreover, the organization has a centralized structure, meaning that all the decision and directions are provided by the Swedish part of the company, the IKEA Sweden, responsible for managing product range, supervision and development of IKEA’s marketing strategy, logistics and purchasing strategies. With about 237 stores globally, IKEA has found ways to perform some of the value chain activities internally, while others, the company uses its wide range network of suppliers, logistics, and technology to facilitate its international business model. According to the article, IKEA’s network includes, 1,380 direct suppliers, 10,000 sub-suppliers, which
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